Firms Often Have Suboptimal Capital Structures Because

question 71

Multiple Choice

Firms often have suboptimal capital structures because

• A) their managers do not understand the theory of optimal capital structure.
• B) some business owners think their firm will never become insolvent.
• C) firms are affected differently by bankruptcy and agency costs.
• D) some firms do not pay taxes.
• E) operating leverage is more important than financial leverage in some firms.

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Definitions:

NASW Code

Refers to the Code of Ethics developed by the National Association of Social Workers, which guides the professional conduct of social workers by outlining principles and ethical standards.

Verbal Communication

The process of conveying or exchanging information and ideas through spoken words, essential in human interaction and collaboration.

Intimate Relationship

A close, personal, and often affectionate or loving connection between individuals.

NASW Code

Ethical framework established by the National Association of Social Workers, designed to guide the professional conduct and decision-making of social workers.